Data Sources
This Study is based on the receipt and
expenditure data presented in the budget
documents of twenty-eight State Governments.
Data in respect of two Union Territories (UTs) with
Legislature, viz., National Capital Territory of Delhi
(NCT Delhi) and Puducherry are separately
provided as memo item in all Statements. The
analysis conforms to the data presented in State
Budgets and the accounting classification thereof.
The detailed Appendices are based on the
classification of receipts and expenditure of
individual States/UTs into Revenue and Capital
Accounts. Revenue expenditure and capital
expenditure are further bifurcated into ‘Plan’ and
‘Non-Plan’. Some supplementary information
regarding institutional reforms, level of guarantees
(contingent liabilities), expenditure on wages and
salaries and operations and maintenance are
obtained from the State Governments. Information
on Additional Resource Mobilisation (ARM) is not
separately presented in the Study and is included
in the respective receipt heads. Information
received from the Planning Commission relating
to State-wise Plan outlays are also incorporated
in the Study. Data on debt relief to State
Governments based on recommendations of
Twelfth Finance Commission (TFC) and the
outstanding State-wise loans under the National
Small Savings Fund have been obtained from the
Ministry of Finance, Government of India. The
outstanding State-wise Central loans have been
sourced from the Union Finance Accounts.
Besides, several items of data including Ways and
Means Advances (WMA)/ Overdraft (OD), market
borrowings, investment of State Governments in
Central Government securities and maturity profile
of the State Development Loans have been taken
from the Reserve Bank records.
The data provided in Appendix III (Capital
Receipts) and Appendix IV (Capital Expenditure)
are on a gross basis for all items, including Public Accounts. Additionally, Appendix III gives broad
total of capital receipts taking public accounts on
a net basis and Appendix IV gives broad total of
capital expenditure exclusive of public accounts.
The capital receipts provided in Appendix Tables
(consolidated) and Statements (State-wise) and
used in the analysis include public accounts on a
net basis while public accounts are excluded from
the respective capital expenditure. The All States
totals in the Study and National Averages pertain
to twenty-eight State Governments, excluding
NCT Delhi and Puducherry. The data for Gross
State Domestic Product (GSDP) for each State
have been sourced from the Central Statistical
Organisation (CSO). This is supplemented by
information received from the respective State
Governments and GSDP estimates used in the
budget documents of the State Governments.
Wherever GSDP data are not available, the data
are estimated based on the previous three years’
annual average growth rate. Data on GDP are at
current market prices and are obtained from CSO.
The ratios to GSDP/GDP are worked out based
on latest available GSDP/GDP estimates. Data on
population are sourced from the website of
Census of India. Percentage variation worked out
in Appendix Tables and Statements may differ due
to rounding-off of figures.
Methodology
The analysis of the expenditure data is
disaggregated into development and nondevelopment
expenditure. All expenditure relating
to Revenue Account, Capital Outlay and Loans
and Advances are categorised into social services,
economic services and general services. Broadly,
the social and economic services constitute
development expenditure, while expenditure on
general services is treated as non-development
expenditure. Thus, the development expenditure
includes the development components of revenue
expenditure, capital outlay and loans and advances by the State Governments. The social
sector expenditure includes expenditure on social
services, rural development, and food storage and
warehousing under revenue expenditure, capital
outlay and loans and advances by the State
Governments. Capital outlay includes both
development and non-development capital outlay.
The Overall Deficit/Surplus (Conventional Deficit/
Surplus) used in the analysis is equal to the sum
of Cash Deficit/ Surplus (difference between the
closing balance and opening balance), increase/
decrease in Cash Balance Investment Account
and the increase/decrease in WMA extended by
the Reserve Bank.
Methodology for Debt Statistics
The Reserve Bank in its Study of 2005-06
Budgets had compiled a data series on
outstanding liabilities of State Governments since
1990-91. In the 2006-07 Study, a revised series
of outstanding liabilities was published by
including data on reserve funds, deposits and advances and contingency funds of State
Governments. In the 2007-08 Study, a revised
data series on outstanding liabilities of State
Governments was published from 2003-04
onwards based on the Combined Finance and
Revenue Accounts of Union and State
Governments, Reserve Bank records, data
received from Ministry of Finance, Union Finance
Accounts and the budget documents of the State
Governments. The present Study follows the same
methodology for compilation of outstanding
liabilities as given in 2007-08 study and uses the
same data sources. The data provided in Appendix
Tables 21 and 22 and Statements 26 to 28 on debt
position of States are provisional. Based on the
State-wise market loans (Statements 32), the
maturity profile of outstanding State Government
securities is provided in Statements 34-35. These
Statements also incorporate the appropriation of
liability of the three bifurcated States to their
respective newly formed States on the basis of
Government of India notifications.
Note : State-wise data on major fiscal indicators for the period 1980-81 to 2003-04 (BE) and State-wise
detailed data on the transactions in the revenue and capital account for the period 1990-91 to
2003-04 (BE) were presented in “Handbook of Statistics on State Government Finances” published
by the Reserve Bank in June 2004. This publication is available on the Reserve Bank’s website
(www.rbi.org.in). The Study on State Finances since 2001-02 is also available on the Reserve
Bank’s website. |